China in no hurry to resolve tariff deadlock with US: Report

KARACHI, Pakistan

China is in no hurry to resolve the tariff deadlock with the US, citing deep divisions within the Trump administration’s trade team and uncertainty about the final direction of Washington's policy, the South China Morning Post reported Thursday, quoting sources familiar with the matter.

“Beijing will hold off on entering serious trade talks with the US while it waits to see which of Trump’s advisers will have his ear and how other countries will respond to the 90-day pause on tariffs," it said, citing unnamed sources.

China believes that engaging in talks prematurely would risk exposing its negotiating position without knowing who will ultimately be on the other side of the table.

“There is no clear sign which clique will win,” the report cited one source as saying, citing the competing views of Trump’s key advisers – Peter Navarro and Robert Lighthizer, who favor decoupling, and Treasury Secretary Scott Bessent, who supports a balanced deal.

Beijing is likely to watch closely until the 90-day reprieve on tariffs imposed by the US lapses in July.

The Trump administration announced sharply higher tariffs on April 2 but granted a three-month grace period to most countries except China.

China is also monitoring deals Washington might strike with other countries during the grace period, such as India and Indonesia, before determining its next steps, the report added.

*Writing by Aamir Latif